Tenancy legislation changes likely to come

The Residential Tenancies Act is likely going to be amended and reviewed by Phil Twyford (the Minister of Housing).

Minister Phil Twyford outlined a number of ways the Government is looking at amending the current act by ending “no cause tenancy terminations,” increasing the notice period landlords must give in order to terminate a tenancy to 90 days (up from 42), and limiting rent increases to once a year. Other updates to the law will include Better equipping tenants and landlords to reach agreement about pets and minor alternations to the home, updating the rules around boarding houses to provide adequate protection for boarding house tenants, and potentially regulating the practice of rent bidding.

Rent bidding is a process where the property manager gets potential tenants to submit or tender what they are willing to pay and the property manager will choose the most suitable rent. This is not exactly illegal but this practice is not well received by the media, government or the tenants.

The reform will not be looking at rules around bond or composition and jurisdiction of the Tenancy Tribunal.

The Government is at a consultation stage now allowing eight weeks to receive submissions from the public on the proposals.

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